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Disgraced crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison after being convicted of stealing billions of dollars from his customers.

He was the chief executive of FTX, which suddenly went bankrupt in November 2022 – leaving millions of users frozen out of their accounts and unable to make withdrawals.

The 32-year-old American could have faced up to 100 years behind bars – but last month, his lawyers argued such a sentence would have been “barbaric” and a five-year term would be more appropriate.

Initial reports said he had been sentenced to 20 years – but this has since been corrected to 25.

Prosecutors had asked the judge to jail Bankman-Fried for 40 to 50 years, arguing the public needed protecting from the fraudster and a harsh punishment would deter other criminals.

“The defendant victimised tens of thousands of people and companies, across several continents, over a period of multiple years,” prosecutors said in a court filing.

“He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence.”

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Prosecutors also said Bankman-Fried had cost customers, investors and lenders over $10bn (£7.9bn) by misappropriating funds to fuel his quest for influence and dominance in the new industry, and had illegally used money from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, alleged bribes to Chinese officials and private planes.

At the sentencing hearing in Manhattan, Judge Lewis Kaplan said the businessman lied on the witness stand when he insisted he had no knowledge of customer funds being used this way.

The judge also described Bankman-Fried’s claim that victims will be paid back in full as “misleading and logically flawed”.

“A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on the sentence by using his Las Vegas winnings to pay back what he stole,” Judge Kaplan warned.

Crypto king’s jail term is end of an era

Sam Bankman-Fried was breathlessly described as a wunderkind – a boy wonder transforming the world of finance.

Renowned for his messy hair and unkempt appearance, he graced the covers of Forbes and Fortune, who pondered whether he could become the next Warren Buffett.

The 32-year-old was the founder of FTX, which had quickly become the world’s second-largest cryptocurrency exchange – a place where investors could buy and sell digital assets like Bitcoin.

Star-studded adverts featuring the tennis player Naomi Osaka and the comedian Larry David added to its allure – with eye-watering sums spent on sponsorship deals.

But in November 2022, Bankman-Fried’s crypto empire came crashing down after it emerged that customer funds worth $10bn (£7.9bn) was missing.

Read the full analysis here

The judge said that the sentence reflected “a risk that this man will be in a position to do something very bad in the future”.

“And it’s not a trivial risk at all.”

He added that it was “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time”.

Before he was sentenced, Mr Bankman-Fried apologised in a rambling statement.

FILE PHOTO: Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, U.S., July 26, 2023. REUTERS/Amr Alfiky/File Photo
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Sam Bankman-Fried leaving court last July. Pic: Reuters

“A lot of people feel really let down. And they were very let down. And I’m sorry about that. I’m sorry about what happened at every stage,” he said.

“My useful life is probably over. It’s been over for a while now, from before my arrest.”

Judge Kaplan said he would advise the Federal Bureau of Prisons to send him to a medium-security prison or less near the San Francisco area because he’s unlikely to be a physical threat to other inmates or prison staff, and his autism and social awkwardness would make him vulnerable to other inmates in a high-security location.

Read more:
The meteoric rise and even sharper fall of Sam Bankman-Fried

Why industry may never recover from downfall of ‘crypto king’

It took just five-and-a-half hours for a jury in New York to convict him of two counts of fraud and five of conspiracy last November.

Three people from Bankman-Fried’s inner circle – including his former girlfriend Caroline Ellison – pleaded guilty to related crimes and testified at his trial.

Sam Bankman-Fried's colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters
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Sam Bankman-Fried’s colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters

Bankman-Fried’s conviction followed a dramatic fall from grace from his time as chief executive of FTX – the second-largest cryptocurrency exchange in the world at one time – when he was worth billions of dollars on paper.

FTX allowed investors to buy dozens of virtual currencies, from Bitcoin to more obscure ones like Shiba Inu Coin.

FTX logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
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Pic: Reuters

Flush with billions of dollars of investors’ cash, Bankman-Fried rode a crest of success that included a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.

But after the collapse of cryptocurrency prices in 2022, Bankman-Fried tried to plug the holes in the balance sheet of FTX’s hedge fund affiliate, known as Alameda Research.

Bankman-Fried’s victims – an estimated 80,000 of whom are based in the UK – remain out of pocket, with some losing their life savings.

Prosecutors described his crimes as one of the biggest financial frauds in US history.

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Wife of British journalist held by US immigration issues warning to UK fans travelling to World Cup

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Wife of British journalist held by US immigration issues warning to UK fans travelling to World Cup

The wife of British journalist Sami Hamdi, who was held for more than a fortnight by US immigration, has issued a stark warning to football fans travelling to the 2026 World Cup about the risk of being detained.

Mr Hamdi, who returned to the UK on Thursday, was initially detained at San Francisco International Airport on 26 October.

US officials revoked his visa without warning while on a speaking tour, during which he criticised Israel’s actions in Gaza.

US Immigration and Customs Enforcement (ICE) said the tour was cancelled due to security rules and that he was in the country illegally.

Sitting alongside him in an interview for Sky’s The World With Yalda Hakim, Soumaya Hamdi explained her concerns about British people travelling to the US.

Soumaya Hamdi has issued a warning to British football fans 'who value their freedom of speech'
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Soumaya Hamdi has issued a warning to British football fans ‘who value their freedom of speech’

“I would say to British citizens who value their freedom of speech to be very careful, because you got the World Cup in the United States coming up next year.

“If this could happen to Sami on a valid visa, a British citizen, a registered journalist, then it could very well happen again.”

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Ms Hamdi added she was not happy about how the UK government had handled their case.

“The assistance that we received from the British government… was really very disappointing.

“I think this is really very concerning that the government is not taking more serious action with regards to our closest ally.”

Speaking about his arrest, Mr Hamdi said it had been “quite an aggressive experience”.

“They escorted me outside of the airport, there was this black car, the kind of things you see in the movies,” he said.

“When I asked them ‘Can I call my family to let them know I’m OK?’, a lady from behind grabs me, pushes me on the car, and says, ‘All right, that’s enough. You’re under arrest’.”

Read more from Sky News:
New arrest over alleged Hamas plot
Fears about ceasefire in Sudan
British man returns following ICE detention

He added that, while in detention, he felt there was an attempt to wear him down by restricting access to justice.

“You felt, like, with ICE, it’s a battle of wills. Based on the merits of the case, they can’t actually win, but what they do is they keep delaying you and delaying until you’re just desperate to go home.”

Mr Hamdi, who is Muslim and lives in London, insisted he had complied with all visa conditions and alleged the move was linked to his advocacy for Gaza.

According to Mr Hamdi’s legal team, he accepted an offer to leave the US voluntarily after being charged with visa overstay.

His family announced on Monday the US government had agreed to free him and confirmed on Thursday morning he was on a flight home.

Discussing his treatment while in detention, Mr Hamdi said he noticed a distinct change when news outlets like Sky News became aware of his case.

“They throw you in a cell, you sleep in the foot cuffs. They kept me there with 24 hours until my legs were swollen. When I told the guards, ‘Look, my legs are swollen, visibly swollen’, the guards simply ignored it.

“They only started treating me better when everybody at Sky News and the other media started raising their voices.”

The Trump administration has pursued a sweeping immigration crackdown this year, revoking visas for people accused of supporting terrorism and deporting foreign nationals who have voiced support for Palestinians.

After Mr Hamdi’s arrest, a spokeswoman for the US Department of Homeland Security said his visa had been revoked as “those who support terrorism and undermine American national security will not be allowed to work or visit this country”.

But he told Sky News he strongly disputed the reason for his detention. “On the charge sheet… there was no mention of anything related to terrorism or anything related to what they were saying online,” he said.

“They knew no evidence existed of any of the accusations they were making. And in the end, the deal was about face-saving. I was happy to go home.

“Of course, they get to say that Sami Hamdi ended up leaving America, the case gets closed, and it worked out for both of us.”

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Trump signs bill to end shutdown – but doesn’t take questions after Epstein files released

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Trump signs bill to end shutdown - but doesn't take questions after Epstein files released

The US federal government’s longest-ever shutdown has come to an end after Donald Trump signed off a congressional vote with his presidential approval.

But the president was in no mood to field questions from the media after hailing the long-awaited funding bill, which he signed just hours after thousands of files related to Jeffrey Epstein – in which he was referenced – were released.

As it happened: Trump ends shutdown after Epstein files released

Mr Trump has always denied any wrongdoing in relation to the deceased billionaire paedophile, and said in a Truth Social post after their release that the “Jeffrey Epstein hoax” is a “trap” set by Democrats.

His appearance in the Oval Office came after the House of Representatives voted to reopen the government, after the Senate – the upper chamber of Congress – reached a deal on Monday.

The breakthrough came when a handful of Democrat senators rebuffed their party’s leadership – who’d spent weeks pushing for guarantees on healthcare subsidies – and teamed up with Republicans.

The deal then went to the president, who signed it into law.

“It’s a great day,” he declared, as he blamed Democrats for the 43-day shutdown that left federal workers without pay, food aid undelivered, air travel disrupted, and museums closed.

But the big media moment from behind the historic White House Resolute desk was short and sweet – with Mr Trump, unusually, taking no questions from journalists.

The bill will see the federal government funded until 30 January. Pic: AP
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The bill will see the federal government funded until 30 January. Pic: AP

What’s in the latest Epstein files?

Democrats on the House Oversight Committee initially published several emails which they said “raises questions about Trump and Epstein’s relationship, Trump’s knowledge of Epstein’s crimes” and the president’s relationship to Epstein’s victims.

White House press secretary, Karoline Leavitt, said the “selectively leaked emails” were an attempt to “create a fake narrative to smear President Trump”. He has consistently denied any involvement or knowledge about Epstein’s sex trafficking operation.

It prompted Republicans to retaliate by releasing more than 20,000 pages from Epstein’s files and accusing Democrats of “cherry-picking” their documents.

Read more: What Epstein emails say about Trump

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The Epstein files: The main things you need to know

Epstein took his own life in prison in 2019 following a conviction for soliciting prostitution from a minor, for which he was registered as a sex offender. He was awaiting a trial for sex trafficking charges.

In his Truth Social post, Mr Trump said the release of the latest files were a “deflection” from the shutdown.

Trump and the Epstein questions that will not go away

For years, Trump promised to declassify all Epstein-related files – a pledge positioning him as a truth-teller exposing elite corruption.

Now that others are releasing those materials first, the image that helped return him to the White House takes a hit.

Instead of leading the charge, he’s reacting to it, and among his base, there are many who remain convinced of an Epstein-related cover-up.

Legally, there is nothing new here pointing to liability, but reputationally, this is dangerous terrain for the president.

But he has weathered much worse – his survival often relies on turning scandal into proof of persecution.

That explains why the White House is doubling down on its claim that Democrats are releasing selective documents to the “liberal media” to smear Donald Trump.

The shutdown, which started on 1 October, has disrupted the lives of millions of Americans as all non-essential parts of government have been frozen.

It was the first shutdown in almost seven years.

As he put pen to paper, the president accused the Democrats of an “extortion” attempt over their push for healthcare subsidies – provided under the Affordable Care Act brought in by Barack Obama – to be extended.

“Republicans never wanted a shutdown,” he said.

“It’s cost the country $1.5trn,” he added.

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What do Epstein documents say about Trump, Andrew and Mandelson?

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What do Epstein documents say about Trump, Andrew and Mandelson?

Thousands of documents from disgraced financier Jeffrey Epstein have been released, which reference Donald Trump, Andrew Mountbatten-Windsor and Peter Mandelson among others.

Democrats on the House Oversight Committee initially published several emails which they said “raises questions about Trump and Epstein’s relationship, Trump’s knowledge of Epstein’s crimes” and the president’s relationship to Epstein’s victims.

White House press secretary, Karoline Leavitt, said the “selectively leaked emails” were an attempt to “create a fake narrative to smear President Trump”. He has consistently denied any involvement or knowledge about Epstein’s sex trafficking operation.

Trump latest: 20,000 pages published in response to ‘leak’

Donald Trump and Jeffrey Epstein in 1992. Pic: NBC
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Donald Trump and Jeffrey Epstein in 1992. Pic: NBC

It prompted Republicans to retaliate by releasing more than 20,000 pages from Epstein’s files and accusing Democrats of “cherry-picking” their documents.

Here’s what the emails say…

:: Epstein discusses Trump

Three messages, dated between 2011 and 2019, are between Jeffrey Epstein and his sex trafficking co-conspirator Ghislaine Maxwell and between Epstein and author Michael Wolff.

In the first exchange of emails, between Epstein and his associate Ghislaine Maxwell, dated 2 April 2011, Epstein wrote:

i want you to realize that that dog that hasn’t barked is trump.. Virginia spent hours at my house with him ,, he has never once been mentioned. police chief. etc. im 75% there

Maxwell responded:

I have been thinking about that…

The name Virginia, refers to Virginia Giuffre, a prominent Epstein survivor who died in April and had never accused Mr Trump of wrongdoing.

Ms Giuffre made allegations of three sexual encounters with Andrew Mountbatten-Windsor, who was stripped of his prince title, in her autobiography which was released last month – allegations Andrew has denied.

In the second exchange of emails, between Epstein and Michael Wolff, a journalist who has written several books about the Trump administration, dated 31 January 2019, Epstein wrote:

[REDACTED NAME] worked at mara lago. . she was the one that accused prince andrew. . trump said me to resign, never a member ever.. of course he knew about the girls as he asked ghislaine to stop

The third email exchange, between Epstein and Wolff, dated between 15 and 16 December 2015 shows that Wolff wrote:

I hear CNN planning to ask Trump tonight about his relationship with you–either on air or in scrum afterwards.

Epstein replied:

if we were able to craft an answer for him, what do you think it should be?

Wolff responded:

I think you should let him hang himself. If he says he hasn’t been on the plane or the house, then that gives you a valuable PR and political currency. You can hang him in a way that potentially generates a positive benefit for you, or, if it really looks like he could win, you could save him, generating a debt. Of course, it is possible that, when asked, he’ll say Jeffrey is a great guy and has gotten a raw deal and is a victim of political correctness, which is to be outlawed in a Trump regime.

Responding to the release of emails, Mr Wolff posted a video on Instagram: “I have been trying to talk about this story for a very long time now and perhaps we’re getting close to the smoking gun.

“These two men… had the closest of relationships for more than a decade.”

:: Andrew included in Epstein emails

In several email exchanges, Epstein refers to Andrew Mountbatten-Windsor and a picture of him with victim Virginia Giuffre.

A photo emerged in 2011 of Andrew, which has become infamous, showing the former prince with his arm around Virginia Giuffre, apparently taken in Ghislaine Maxwell’s London home.

The former duke, who was recently stripped of his titles, has previously said he didn’t recall meeting Ms Giuffre and claimed an image of the pair could have been doctored.

Although the name of the “girl” is redacted, Epstein appears in his email exchange to be referring to Ms Giuffre, who at the time had spoken to The Mail on Sunday, which had published the photo.

The now infamous photo that appears to show Andrew and Virginia Giuffre. Pic: Rex/Shutterstock
Image:
The now infamous photo that appears to show Andrew and Virginia Giuffre. Pic: Rex/Shutterstock

In an email from Epstein to a reporter on 1 July 2011, he said:

The girl has fled the country with an outstanding arrest warrant. The da (sic) after she accused others, said in writing that she has no credibility, she was never 15 years old working for me, her story made it seem like she first worked for trump at that age and was met by ghislaine maxwell.

Total horseshit, the daily mail paid her money, they admitted it, with the statement that it took money to coax out the truth.

Yes she was on my plane, and yes she had her picture taken with Andrew, as many of my employees have.

In a separate email to a publicist on 1 July 2011, Epstein writes:

The girl who accused Prince Andrew can also easily be proven to be a liar.

I think Buckingham Palace would love it. You should task someone to investigate the girl Virginia Roberts, that has caused the Queen’s son all this agro (sic).

I promise you she is a fraud. You and I will be able to go to ascot (sic) for the rest of our lives.

:: Mandelson and Epstein talk Trump

According to the documents, Peter Mandelson, who was sacked as the UK ambassador to the US in September, was continuing his connections with Epstein in 2016.

Sir Keir Starmer dismissed him after learning about emails between him and Epstein from 2005 to 2010 – including after Epstein’s conviction for soliciting a minor for prostitution.

Andrew and Peter Mandelson at a reception in 10 Downing Street in 2009
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Andrew and Peter Mandelson at a reception in 10 Downing Street in 2009

In an exchange between Epstein and Peter Mandelson on 6 November 2016, Epstein wrote:

63 years old. . you made it

Responding to the message referring to his birthday several days before, Mr Mandelson replied:

Just. I have decided to extend my life by spending more of it in the US.

On the same day, and just before the 2016 US presidential election, Epstein then replies:

in the donald white house

Epstein goes on to refer to Andrew and Mr Mandelson’s partner, now husband, Reinaldo Avila da Silva:

trump/ and having agreat [sic] deal of fun. In hindsight. you were right about staying away from andrew. I was right in your staying with rinaldo [sic]

According to the documents, Mandelson responds:

Of course, donald in WH. Will he get there? Yes, without Andrew it would not have gone nuclear. Did you advise me to stay with R ? Such a handful but loyal and never embarrassing.

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Exclusive: Mandelson challenged on Epstein links

In a separate email from 7 March 2011, Epstein received an interview request from the BBC via his lawyer:

We are keen to explore the possibility of conducting an interview with Mr Epstein, on the subject of the stories which are circulating, however inaccurately, about both him and Prince Andrew, the Duke of York; we’d be keen to hear from Mr Epstein first hand so that the various and at times, speculative reporting which is at large in the UK press can be better
scrutinised?”.

The message was forwarded to Mr Mandelson, who replied, bluntly:

No!!

In May this year, Mr Mandelson was asked by Sky News about his relationship with Epstein: “I’m not answering any questions about him. My knowledge of him is something I regret, I wish I’d never met him in the first place.”

Read more from Sky News:
Key claims by Virginia Giuffre in memoir
Ghislaine Maxwell appeals to Trump
US Congress summons Andrew

Sky News’ US news partner NBC News has reached out to lawyers for Michael Wolff, Maxwell and the family of Virginia Giuffre for comment.

The top Democrat on the House committee, Robert Garcia of California, said in a statement that the released emails “raise glaring questions about what else the White House is hiding and the nature of the relationship between Epstein and the President”.

The Oversight Committee Democrats say the emails strike “a blow against the White House’s Epstein cover-up”.

But White House press secretary, Karoline Leavitt said in a statement: “The Democrats selectively leaked emails to the liberal media to create a fake narrative to smear President Trump.

“The ‘unnamed victim’ referenced in these emails is the late Virginia Giuffre, who repeatedly said President Trump was not involved in any wrongdoing whatsoever and ‘couldn’t have been friendlier’ to her in their limited interactions.”

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